The Current Year-End Balance Sheet Data for a Company Are

question 146

Essay

The current year-end balance sheet data for a company are shown below:
$\begin{array}{|l|r|}\hline \text { Assets: } \\\hline \text { Cash } & \$ 18,000 \\\hline \text { Marketable securities } & 45,000 \\\hline \text { Accounts receivable (net) } & 157,500 \\\hline \text { Merchandise inventory } & 139,500 \\\hline \text { Long-term investments } & 135,000 \\\hline \text { Plant assets (net) } & \underline { 517,500} \\\hline \text { Total assets } & \underline { \$ 1,012,500} \\\hline\\\hline \text { Liabilities and equity: }\\\hline \text { Accounts payable } & \$ 168,700 \\\hline \text { Accrued liabilities } & 90,000 \\\hline \text { Notes payable (secured by plant assets) } & 234,800 \\\hline \text { Common stock (\$12par) } & 180,000 \\\hline \text { Contributed capital in excess of par } & 135,000 \\\hline \text { Retained earnings } & 204,000 \\\hline \text { Total liabilities and equity } & \underline { \$ 1,012,500} \\\hline\end{array}$ Calculate this company's:
(1)Working capital
(2)Acid-test ratio

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Definitions:

10-speed Transmission

A gearbox with ten possible gear ratios, allowing for a wide range of speeds and improved fuel efficiency.

Gear Ratio Selection

The process of choosing the appropriate gear ratio to achieve desired performance characteristics in machinery or vehicles.

Main Box

commonly refers to the primary housing or encasement that contains the crucial components of a mechanical or electronic system.

Auxiliary Section

An additional section of a piece of machinery or equipment that provides supplemental functionality or capacity.